https://www.taxtmi.com/caselaws?id=66883 The Explanation to section 73 applies only to companies whose business consists in the purchase and sale of shares of other companies, and a deeming fiction cannot be extended beyond its statutory purpose. Units of the Unit Trust of India are not shares of a company, and section 32(3) of the Unit Trust of India Act does not deem them to be shares for section 73 purposes. As the assessee held the units as investments rather than trading stock, the loss on their purchase and sale could not be treated as speculative, and the Commissioner's revision under section 263 failed. en-us Fri, 09 Aug 1996 00:00:00 +0530 Mon, 07 Mar 2011 18:49:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66883 The Explanation to section 73 applies only to companies whose business consists in the purchase and sale of shares of other companies, and a deeming fiction cannot be extended beyond its statutory purpose. Units of the Unit Trust of India are not shares of a company, and section 32(3) of the Unit Trust of India Act does not deem them to be shares for section 73 purposes. As the assessee held the units as investments rather than trading stock, the loss on their purchase and sale could not be treated as speculative, and the Commissioner's revision under section 263 failed. Case-Laws Income Tax Fri, 09 Aug 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66883